Romania's Ministry of Finance announced that the European Commission approved the measures it notified to strengthen Romania's Investment and Development Bank, authorizing a capital increase of up to EUR 1 billion, extending the state guarantee until Dec. 31, 2032, and widening the bank's mandate to additional strategic sectors. The package is intended to expand the bank's financing capacity and support more lending, guarantees and other financial instruments for private companies and public authorities. The capital increase includes a EUR 100 million contribution financed through the Recovery and Resilience Facility. As Romania's national development bank, the institution is meant to complement private-sector funding where projects and beneficiaries face difficulty obtaining market finance. Under the expanded mandate, the bank can support investment not only in infrastructure, renewable energy, digitalization, innovation and small and medium-sized enterprises, but also in defense, high-technology production, knowledge-intensive industries and cybersecurity. The extended state guarantee is intended to provide stability for the bank's long-term investment activity. The ministry said it will continue developing the Investment and Development Bank as a strategic state financing instrument and expand cooperation with European and international financial institutions.

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